Lawmakers push to end Social Security earnings test for working retirees
Sen. Scott and Rep. Murphy propose the Senior Citizens’ Freedom to Work Act to repeal the retirement earnings test, which currently reduces Social Security benefits for people who work before reaching full retirement age. In 2026, earnings limits impose benefit deductions ($24,480 threshold with $1 cut per $2 earned; FRA has a higher limit with $1 cut per $3) until FRA is reached. Proponents say removing the test would boost work incentives for older Americans and simplify benefits, while opponents warn it could raise near-term costs and impact Social Security’s solvency. The bill’s fate remains uncertain, and savers are advised to use SSA tools to understand their personal impact.
